My purpose for writing this blog is to help improve health and create wealth for those who read it. I will write about insurance, investment, healthcare, current affairs and about myself. Should you have enquiry, drop me an email at akhiat@pacific.net.sg.

Saturday, November 1, 2008

Anyone who invest or read regularly should know what a Bull or Bear Market means in Financial Term. But have you ever wonder why they are given such names? Why don't we call them a Cat or Dog Market, or Tiger or Lion Market?They becomes metaphors for the movement of a market. If the trend is up, it's a bull market. If the trend is down, it's a bear market.

Let understand what is a Bull and Bear market.* A bull market tends to be associated with increasing investor confidence, motivating investors to buy in anticipation of future price increases.* A bear market is described as being accompanied by widespread pessimism. Investors anticipating further losses are often motivated to sell, with negative sentiment feeding on itself.

How does the terms come about?* Firstly, the use of "bull" and "bear" to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air while a bear swipes its paws down. * In short, a bull attack upwards and a bear attack downwards.* Secondly, bulls and bears are very strong animals. They are very agressive and will fight with all their strength and might. This explains why the stock market rises or falls that furiously during a bull or bear run.* Thirdly, a bull normally charge at a very high speed whereas a bear is normally lazy and sleep most of the time. This explain why people don't invest during bear market.

How Bumble Bees come into the picture then?* Bumble Bees are investors like you and me who diligently buzz around the financial market regardless its a bull or bear market. This explains why financial market will not die because there will always be people investing. This also explains why it never fails to recover from a bear market.* Bumble Bees like to follow each other, do the same thing and don't bother to think. It explains the herd behavior of investors. When you buy, I buy. When you sell, I sell. Don't need to think so much.* When the bee hive or colonies are disturbed, they get panic easily and buzz around to sting people. It explains why investors always get panicky and causes the financial market to fall below rationale level.

Now, you know about Bull and Bear markets. So do you want to be a Bumble Bee???

Thank you for visiting my blog

Khiat Han Hwee Adrian

I worked as a Shipping Executive before I switched to be a Financial Adviser 5 years ago. My job was very stable then but I wasn't happy with my 9-5 routine. I eventually pursued this career because I found meaning in helping people with their finance, especially towards insurance and investment planning.

It took my family and friends by surprise because I am known to an introvert who couldn't string words properly. My family are dead against it because they felt that I can't survive the industry and that I had wasted my education and a good career.I have an average IQ and certainly not the most knowledgable adviser. However, I assure my professionalism and integrity to give my clients the best value. Do drop me an email if you like to seek my opinion on your finance.